The triad value function – theorizing the value potential of connected relationships

Abstract

PurposeThe purpose of the paper is to explicate how connectedness of relationships results in varying value potentials of triads.Design/methodology/approachFirst connectedness is re-described as an actor-perceived and actor-interpreted phenomenon. The re-description is used to theorize the triad value function. Next, the applicability and validity of the concept is examined in a case study of four closed vertical supply chain triads.FindingsThe case study demonstrates that the triad value function facilitates the analysis and understanding of an apparent paradox; that distributors are not dis-intermediated in spite of their limited contribution to activities in the triads. The results indicate practical adequacy of the triad value function.Research limitations/implicationsThe triad value function is difficult to apply in the study of expanded networks as the number of connections expands exponentially with the number of ties in the network. Moreover, it must be applied in the study of service triads and open vertical supply chain triads to further verify the practical adequacy of the concept.Practical implicationsThe triad value function cannot be used normatively or prescriptively. It is a descriptive tool which indirectly supports managerial decision-making through the analysis of how the structural context of a triad influences the value of relationships.Originality/valueThe paper offers an additional aspect for the study of value in and of triads. It illustrates that perceived connectedness of relationships operates as a triad value function, which captures the structural value potential of the triad for a focal actor.